Azerbaijan is a democratic country with a well-known, rich history, culture, and heritage as well as abundant natural resources including gas and oil. With significant neighbors including Russia, Turkey, Georgia, and Iran as well as sea exits to the Caspian Sea and Kazakhstan and Turkmenistan as sea border neighbors, this region is situated between Asia and Europe. By accelerating economic growth and liberalizing several procedures, including legal, financial, social, and procedural ones, Azerbaijan continues to demonstrate and solidify its place on the global stage. Azerbaijan’s rapid growth has turned it into a nation with significant potential and a sound financial system that draws foreign investors searching for lucrative new business ventures. Doing Business, a well-known worldwide assessment, placed Azerbaijan 34th out of 190 nations in its 2020 report.
Creating a business in Azerbaijan
Before establishing a company in the nation, an interested investor is required to conduct adequate research into the country’s legal processes, applicable international regulations, and the necessary amount of capital investment. It is necessary to have a solid understanding of the cultural, social, and political factors that will have an impact on the launch and development of the company; failure to do so may result in unanticipated consequences. The failure to adequately prepare, investigate, or consider cultural nuances can frequently result in tragic consequences for global launches.
Forms of businesses in Azerbaijan
Before beginning the incorporation process, choosing the kind of company should be taken into account. Investors looking to launch an IT company may choose from the following options:
- Partnerships that are appropriate for small company operations and might be generic or limited.
- Private and public corporations (LLC, CJSC, OJSC)
- Subsidiaries and branch offices are the most effective option for a foreign business
How to start an IT business
There are a few straightforward processes that must be followed to start up a business in Azerbaijan. Which are:
- selecting and reserving a business name that must meet certain criteria;
- drafting the company’s bylaws in Azerbaijani, legalizing, and translating papers from other languages;
- delivering the firm certificates and registration paperwork to the appropriate tax authorities.
The following actions must be done after official registration before starting real company activities in the country:
- obtaining the company’s director’s ASAN imza (signature);
- opening a bank account at a local bank in Azerbaijan;
- the employment contract for the director being registered with the state registry.
The paperwork needed to register a business in Azerbaijan
You must submit the necessary paperwork to the State Taxes Service’s Legal Entity Registration Division to establish your business in the c. The following paperwork and actions are required to complete the company’s official registration:
- The State Tax Service will supply an application form (registration authority of legal entities). This document requires notarization.
- Documents about the firm, such as the charter, the founders’ or shareholders’ resolution establishing the business, and the appointment of a legal representative (director, general manager &, etc).
- Information about the stockholders and founders, including IDs and passports.
- The Articles of Association, Memorandum, and Certificate from Trade Registry are also necessary if the owners (shareholders) are foreign legal entities.
- Power of attorney – Each party should produce a notarized copy of the power of attorney if another person is representing the company’s director, shareholders, or founders.
- Capital payment receipt for state obligations and charters before incorporation.
Your application will be reviewed by the state tax service over five working days. As soon as the company is founded in Azerbaijan, a few months following the registration of the company, it is important to make contact with the tax service to reveal the entity’s earnings.